Canadian Pacific Railway (CP) Cuts Q2 Outlook; Notes Lower Bulk Commodity Volumes

Canadian Pacific Railway Limited (NYSE: CP) announced it is providing an earnings outlook for the second-quarter of 2016 due to lower-than-anticipated volumes in bulk commodities, such as grain and potash, the unexpected and devastating wildfires in northern Alberta and a strengthening Canadian dollar.

CP now expects revenues to decline approximately 12 percent from the same quarter a year ago, adjusted diluted earnings per share of approximately $2.00 and an operating ratio of about 62 percent.

*** The Street sees Q2 revenue of $1.57 billion and EPS of $2.50.

Given the transitory nature of these impacts, CP remains confident in its business model and believes actions taken in the first half of the year – coupled with an anticipated improvement in commodity volumes – provide a path for the company towards meeting its full-year guidance.

"CP will continue to focus on controlling costs in a difficult environment," said E. Hunter Harrison, CP Chief Executive Officer. "While we acknowledge the environment remains challenging, additional cost reduction opportunities and the potential for stronger volumes in the back half of the year still lead us to believe that achieving double-digit EPS growth in 2016 is a possibility."

CP will release its second-quarter financial and operating results at 8:30 a.m. eastern time (6:30 a.m. mountain time) on July 20, 2016.

The company will discuss its results with the financial community in a conference call beginning at: 11 a.m. eastern time (9 a.m. mountain time) on July 20.

Conference Call AccessToronto participants dial in number: 1-647-427-7450 Operator assisted toll free dial in number: 1-888-231-8191 Callers should dial in 10 minutes prior to the call.

WebcastWe encourage you to access the webcast and presentation material in the "Investors" section of CP's website at http://www.cpr.ca/en/investors/earnings-releases

A replay of the second-quarter conference call will be available by phone through to August 17, 2016 at 416-849-0833 or toll free 1-855-859-2056, password 38007320.

Access to the webcast and audio file of the presentation will be made available at: http://www.cpr.ca/en/investors/earnings-releases

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